Is it true that salvage titled cars cannot have full coverage? Everybody says you cannot get full coverage on a salvage titled car, but when I searched on the internet, it is possible. Who knows for a fact?

If the insurance company tells you they offer full coverage, ask what they would pay you in the event of a total loss accident, or theft, etc... In NC, as far as insurance is concerned, salvage titled vehicles have a value of ZERO DOLLARS. Its solely up to the insurance company on how much they want to give you.

I had a salvage-rebuilt titled CRX, and an old man hit me in an intersection and totalled my car. His insurance company initially was not going to give me ANYTHING for my car. I went and talked to my local insurance agent and a lawyer, and they both told me that my car "HAD ZERO VALUE". I fought it for a couple months, and eventually got $300 from them, and got to keep my front-ended CRX, but that was it (aside from paying my medical bills).

I thought since my car had a "REBUILT" title I was ok... I was wrong. This is also why banks quit giving car loans for salvage vehicles. If you crashed your car before you paid it off, they wouldnt get to collect any insurance money, and the loan repayment would be riding on solely your good word that you would finish paying for something you didnt even have any more.

Another thing for you to look into, some insurance companies will let you insure a vehicle for a set value YOU determine. Say you have spent $10k on all your mods to your honda. You can insure it for $10k-$12k so if something happens you're not screwed. I know my insurance company will do this (GEICO), but I havent done it for my car yet. You have to list what all you've done to the car, and the prices for your upgrades, etc. There are other insurance companies that specialize in this sort of thing. It's what people with restored muscle cars, etc. use.

Bottom line though, if an insurance agent tells you something (like the insured value of your car) GET IT IN WRITING, in blood if possible, with a thumb print of your agent, notorized, with a picture of him holding the document in one hand and his other hand on the bible. Maybe, just maybe then you wont get screwed in the end.

It has been my personal experience that insurance agents, like lawyers and politicians, will tell you ANYTHING YOU WANT TO HEAR to get your money. Then they have a nice way of forgetting or getting out of what they said later on, when something could potentially work to your advantage.